What is a Short Sale in Sonoma?

Understanding a Short Sale

If you are wondering what is a short sale in Sonoma, a great way to begin to

understand the process would be to understand how a short sale is defined.While the term “short sale” may be familiar to some people who watch the news, most people may not know what is a short sale in Sonoma. To give a brief definition, a short sale is when a house is sold for a lower amount than is owed on the mortgage loan that was used to purchase the house. A short sale typically occurs when a homeowner falls behind on mortgage payments. When he is unable to pay back the debt by selling the house, the owner can be faced with a foreclosure. In order avoid losing the home, the owner can appeal to the lender for permission to sell the house for a lower amount than is owned. If the bank agrees, then the house is listed for sale and the process of a short sale begins. Read on to find out what is a short sale in Sonoma. To truly understand what is a short sale in Sonoma, it may be beneficial to look at the benefits for all parties. For the seller, this option may be the only way to avoid a foreclosure. A short sale does not do the same damage to credit and it carries less stigma because the seller is making an effort to meet obligations rather than walking away. Lenders also benefit more from a short sale than from a foreclosure. Because a foreclosure comes at a significant expense and the selling price is usually low, the lender will typically allow this option. Finally, the buyer can also benefit from a short sale. While the listing of a short sale is similar to any other home, the buyer has an opportunity to purchase a property for a lower than market value. Remember that while a foreclosure will have a greater impact on credit scores, a short sale seller will still have a credit hit. However, when debt is high, knowing what is a short sale in Sonoma can be beneficial since this may be the only option left available to the homeowner. Also, the home is typically sold as-is and the seller does not have to make any repairs, which can make the process easier.

Another aspect of knowing what is a short sale in Sonoma, is understanding the process. The seller will typically work with a real estate agent to prepare a package for the lender that includes information about his current financial status. The lender will look through the information and then approve the case if convinced. After preparing a broker’s price opinion which estimates the market value of the home, the seller and agent will work together to find a list price. Once they’ve arrived at a price, the lender has to approve this offer. The sales contract is then executed and the house is sold in a way that’s very similar to any other home sale. If you’re looking at what is a short sale in Sonoma and wondering if it’s right for you, call or visit Sunvest Property Solutions today at (707) 939-9450. We buy houses in any condition or situation and can close in just  seven days. We pay fast, fair, and honest prices for your home, so what are you waiting for? We can solve your real estate needs and you can joyfully move on with your life! Call Today! (707) 939-9450     article topic: what is a short sale in Sonoma